New Home construction pricing
cindy retchin
2 years ago
Featured Answer
Sort by:Oldest
Comments (24)
millworkman
2 years agolast modified: 2 years agocindy retchin
2 years agoRelated Discussions
How do you obtain the best price for new home construction?
Comments (11)This is a little OT from the OP question but some things to consider nonetheless-- I didn't want to proceed without a Realtor for our side-- But in my case, it wasn't all about price- I am interested in a new construction home. The builder usually only builds custom homes but had an opportunity to develop a small subdivision of about 28 homes. I asked our realtor about them. He didn't know this particular builder but said there was some risk in this market (already happened with another builder) that the builder could go belly-up in the middle, leaving the development half finished or that they could run low on funds and start cheapening up the materials during the building process. He heard of another case in town (again, not this builder) where people lost their earnest money and their houses were left unfinished. The funds were not put into escrow but used to begin construction but buyers didn't know that going in. I've been (unoffically, usually online) looking for the right home for us for 2 years. When I walked into this model home I fell in love. The price was within our range but the home's look/feel/features were so much above and beyond what I had seen in this price range, so I was skeptical. I wanted the Realtor, who looks at homes day in and day out, to look-- to check the build quality, the surrounding neighborhood (older and not as upscale)to dig up information, and also his opinion on the pricing. Talking price is always uncomfortable for me. I don't want to insult anyone or come across as a cheapskate but I also don't want to overpay so I did ask my Realtor if there was room to move on the price, especially in this market and since I am clueless in the new construction process. He told us there might be a little wiggle room but that he and everyone else that goes into this home can't believe they aren't asking more. I believe they have priced it right to start with (compared to everything else I've seen) and although who wouldn't want to pay less, I think the price is fair. He was also able to check the sales in the developement. He confirmed what the builder told us which was all 5 spec homes they have built so far have sold except one (and builder told us they have a possible contract coming on it) and they have done about 4 pre-sales. The model has only been open for about 6 weeks. Their agent told ours that they got 3 new contracts last weekend. Some builders may be hurting and are giving away the farm to sell, but it is not the case for our builder. Another advantage this builder offers is free consulting with his wife, who is an Interior Designer on all your materials as well as paint colors and modifications (I just paid 75.00 per hour for this in our current home to pick new carpet & paint and other flooring for resale) Also, since they usually build custom, they allow for (and help design) modifications to the plan --we have a few we are already considering-- One is to turn a full sized closet in the laundry into a mudroom style bench with pull out drawers below and hooks for coats & keys and cubbies for gloves/hats etc. Most new construction homes wouldn't change a thing for us, beyond letting us pick the standard carpet etc... The Realtor also negotiated a 6 month contingency to allow us some time to sell our home, while this one is being constructed, and during that time, they can't sell the home from under us and I still get to pick all the colors etc. (I will have to prepay for those modifications upfront which I may not do if my home hasn't sold by that time. I still love the home as is~) I honestly don't have a clue how my Realtor is being compensated by the builder. Maybe they pad the price by a few K to cover it. But he has already handled many details in the contracts that I would not have thought of and I feel I have someone that knows what they are doing lookng out for my best interests in the transaction. We get along wonderfully (at least so far) with this builder but this is the biggest ticket item we will EVER buy, not having a a rep on our side for me would be like going to trial with out a Lawyer....See MoreNew construction home, new sewer main tap - who is responsible?
Comments (7)Holly, I don't know your contract, but if your builder included this in your contract, s/he obviously had strong suspicion that it would be a cost. Without "opening things up", the builder really had no idea what, if any, issues existed. And so s/he obviously planned for the contingency. Was there an estimated cost enumerated in your bid estimate? If you own the lot, you own the "stuff". If s/he owns the lot, that's a whole different matter,....See MoreNew Construction Home: Pay Cash vs Construction Loan
Comments (4)Yes to your own RE attorney. Yes to a methodology of lien release tracking. Yes to setting up a construction draw schedule even if you don't have a loan. Your builder should know when he needs draws and design a schedule for you. Planning is everything. Know what you want and stick to it. Strangely enough, once the foundation is dug, a lot of risk diminishes. If there are no rocks or water, your foundation costs drop off. Shop around for other lenders. You only need a construction loan. Not a construction to perm. They are different. It's good to have a line of credit in your back pocket when building. I suggest you explore a home equity line of credit on your current home. If you need it, you have it. If you don't use it, you were prepared. Lenders will love you. They love to lend to people who don't need the money. And, they love lending to people who already own the land. Expect and prepare for cost overruns. Construction lending is high risk and you are lowest level of risk of a high risk endeavor. Make the lenders compete for your business....See MoreNew Home Construction + Pool Construction - Best way to finance?
Comments (15)While you can include all costs of the pool and landscape into a construction loan, pool and landscape may have little effect on the appraisal. That translates into a higher down payment or cash out of pocket up front. For example: Land+Design+Permits+Construction for a project that appraises at around $1.2 mil also appraises around $1.2 mil. At 80% LTV (loan to value) the client can borrow $960K. (75% = $900K). When we add solar (a CA requirement Jan 1), pool and landscape for about $150K more, the appraisal if we're lucky, increases $50-100K, increasing the loan $40-80K at 80% LTV. The effective loan on the solar/pool/landscape is 25-50%. If the market is less robust, the appraisal won't be affected creating a higher cash out of pocket requirement for loan recording. If you can wait until completion of the home, you can often get an updated higher appraisal and fund these with less cash out of pocket....See Moremillworkman
2 years agoJoseph P
2 years agolast modified: 2 years agocindy retchin
2 years agochispa
2 years agoVirgil Carter Fine Art
2 years agoA G
2 years agoMark Bischak, Architect
2 years agoJeffrey R. Grenz, General Contractor
2 years agoM R
2 years agolkloes
2 years agoJoseph Corlett, LLC
2 years agoGN Builders L.L.C
2 years agoMaureen
2 years agolast modified: 2 years agoGinger P.
2 years agolast modified: 2 years agoVirgil Carter Fine Art
2 years agoRebekah L
2 years agoShola Akins
2 years agoOTM Designs & Remodeling Inc.
2 years agoJJ
2 years agoVerbo
2 years agoanj_p
2 years ago
Related Stories
REMODELING GUIDESPlan Your Home Remodel: The Construction Phase
Renovation Diary, Part 3: The Dumpster arrives, and a little designing on the fly comes in handy
Full StorySHOP HOUZZTrade Exclusive Pricing: Lane Home Furnishings
Find living room seating that’s both cozy and chic. Exclusive pricing ends March 17, 2019.
Full StorySHOP HOUZZTrade Pricing: Amity Home
Update your client’s home with soft and stylish accents by Amity Home. Exclusive pricing ends June 14, 2019.
Full StorySHOP HOUZZTrade Pricing: Dezi Home Products
Shop a premium assortment of innovative accessories for the bath
Full StorySHOP HOUZZTrade Pricing: Union Home
Give your client’s home a contemporary update with these inspiring picks from Union Home
Full StorySHOP HOUZZTrade Pricing: Moe’s Home Furniture
Source trendsetting pieces by this notable furniture brand
Full StorySHOP HOUZZTrade Pricing: Home Security
Outfit your client's home with smart and safe home gadgets
Full StorySHOP HOUZZTrade Pricing: Home Office Essentials
Source furniture, lighting and decor for a stylish work-from-home space
Full StorySHOP HOUZZTrade Pricing: Missoni Home
Textiles to saturate your client’s home with color and eye-catching designs
Full Story
bry911